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Scotia Howard Weil Energy Conference – Centennial Resources Development

Centennial Resources Development · Mar 25, 2019 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 1
  2. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 2
    Centennial Resource Development Overview (1) Figures shown pro forma for March 2019 Senior Unsecured Notes offering ? Oil-Rich Delaware Core Acreage ? ~80,000 net acres in core of Delaware Basin ? 89% operatorship allows for control…
  3. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 3
    High quality acreage position in core of Delaware Source: IHS Petra: Geological Interpretation Software Delaware Basin Well Productivity (Peak, Normalized 90-Day Oil - Bo/d/ft.) Southern Delaware Basin Northern Delaware Basin Loving…
  4. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 4
    Acreage quality and execution deliver results Oil equivalent production (Boe/d) Oil production (Bo/d) Cash G&A Production Taxes Gathering, Processing & Trans. Lease Operating Expense Production (Bo/d and Boe/d) Adjusted EBITDAX1…
  5. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 5
    H & Stephens 2H (1) Represents G&A expense less stock based compensation expense 37,500 55,000 61,082 Initial Guidance Actual 63,500 $710 $766 Initial Guidance Actual $820 $885 $997 Initial Guidance Actual $1,050 $3.60…
  6. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 6
    Differentiated capital discipline 2018 D&C Capital (% of original guidance midpoint spent)1 0% 25% 50% 75% 100% 125% 150% % of original D&C capital guidance midpoint spent Centennial was one of the few E&P companies to maintain…
  7. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 7
    Development to-date drives understanding of position Wolfcamp C Wolfcamp B Lower Wolfcamp A Upper Wolfcamp A 3 rd Bone Spring Sand 3 rd Bone Spring Shale 2nd Bone Spring Sand 2nd Bone Spring Shale 1 st Bone Spring…
  8. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 8
    Southern Delaware Basin Well Productivity Average 2018 Well Performance (6-Month Cumulative Oil Production, Mbo) Source: JP Morgan Equity Research and DrillingInfo Note: Peers include CXO, CPE, CRZO, EOG, JAG and PDCE 0 25 50 75…
  9. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 9
    Competitive Recovery and Revenue Per Lateral Foot * Excerpt from Baird Equity Research Report “Baird Energy Big Data Analytics” (3/10/19) $595 $557 $554 $547 $493 $471 $462 $457 $442 $408 $405 $391 $360 CDEV Median Average Gross…
  10. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 10
    Well Productivity Drives Returns *Excerpt from U.S. Capital Advisors Equity Research 2018 Cash Return on Capital Invested Source: U.S. Capital Advisors Equity Research, Bloomberg and U.S. Capital Advisors estimates. Note: Permian…
  11. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 11
    ? Acquired ~9,000 net acres and ~100 gross operated locations through acquisitions and organic leasing ? Acquisitions predominately funded through sale of ~8,600 non-operated, non-core net acres for ~$140mm ? Added incremental ~200+…
  12. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 12
    Flow Assurance Summary Crude and Natural Gas Summary Average Texas Permian Gas Flaring by Operator1 0% 5% 10% 15% 20% CDEV % Gas Flared Crude Oil ? Basis and takeaway risk mitigated through two firm sales contracts ? In total,…
  13. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 13
    Southern Delaware Water Infrastructure Overview Water Infrastructure Map Operated SWD Well Approved SWD Permit Existing Water Line FY’19 Planned Expansion ? Currently operate 11 SWD wells in Texas with an additional 4 SWD permits…
  14. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 14
    Capital Structure and Liquidity Overview ? Conservative leverage profile at 12/31/18 ? Net Debt / Total Book Capitalization of 17% ? Net Debt / FY 2018 EBITDAX of 1.0x ? ~$1.0 billion of elected liquidity pro-forma for recent notes…
  15. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 15
    Low Leverage Profile Net Debt / Book Capitalization (as of YE 18) Permian Peers Industry Median: 33% CDEV
  16. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 16
    Centennial 2019 Game Plan 17 ? Prioritize balance sheet by moderating production growth ? Dropped one rig in January 2019 to run 6 rigs flat in 2019 ? Estimate 12% oil production growth in 2019 at guidance mid-point ? Plan flexible…
  17. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 17
  18. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 18
    FY 2019 Guidance Summary Guidance summary FY 2019 Guidance Summary Announced 6 rig program and will maintain flexible approach to activity ? Production guidance will provide 12% midpoint oil production growth year-over-year ? Total…
  19. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 19
    Q4 2018 Financial Results Financial summary ($mm, unless otherwise noted ($ in millions, unless specified) FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Average Daily Production (Boe/d) 31,864 54,069 57,528 62,930 69,609 61,082…
  20. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 20
    Hedge Position Overview fy 2019 Q1 Q2 Q3 Q4 FY 2019 MidCush Basis Swaps Total Volume (Bbl) 540,000 91,000 1,380,000 920,000 2,931,000 Daily Volume (Bbl/d) 6,000 1,000 15,000 10,000 8,030 Weighted Average Price ($ / Bbl) ($5.34)…
  21. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 21
    Reconciliation of Adjusted EBITDAX to Net Income Adjusted EBITDAX reconciliation ($ thousands) Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Adjusted EBITDAX reconciliation to net income: 3 months ended March 31, 2018 3 months ended June…
  22. Scotia Howard Weil Energy Conference – Centennial Resources Development – slide 22
    Reconciliation of Adjusted EBITDAX to Net Income Adjusted EBITDAX reconciliation ($ thousands) Predecessor Successor 2016 2017 2018 Adjusted EBITDAX reconciliation to net income: Jan. 1, 2016 through Oct. 10, 2016 Oct. 11, 2016…

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